Gucci has increased prices of its handbags in order to curb the economic toll that the COVID-19 pandemic has brought onto the label. Incidentally, this news comes just days before Chanel’s prediction about the two-year impact the global virus will take on the luxury sector.
Gucci’s adjustments in price were discovered in a report by Jefferies analysts, noting surges between five to nine percent for the Dionysus ($2,290 USD) and Zumi bags ($2,980 USD) in China, Italy and the U.K. The strategic pivot mirrors that of business moves by rivals Louis Vuitton and Chanel, betting on their main demographic as wealthy spenders who will continue to purchase their products even after increased prices. According to analyst Cereda, the price change will lessen the gap between the lower cost of handbags in Europe to major consumer markets like China where prices soar much higher. “We are unsurprised that Gucci, another brand with strong brand heat, is following suit with opportunistic price increases in an attempt to mitigate revenue contraction,” added Cereda. Gucci, so far, has not issued any statements on the matter.
In case you missed it, Tiffany & Co.’s quarterly sales have plummeted by 44 percent.